Bond Alternatives For The Coming Sharknado

October 17, 2013   |   October 2013 Bond Updates
The expected return of a bond is its yield.  Problem: we live in a world where the Federal Reserve is keeping interest rates artificially low.  A 10-year Treasury bond pays 2.7%, perhaps 1.2% after inflation in the best case.  If inflation springs up along the way, which seems somewhere between likely and inevitable, this would leave us with a negative real return.

View more at: http://www.forbes.com/sites/phildemuth/2013/10/17/bond-alternatives-for-the-coming-sharknado/
 
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